Estate Tax Exemption

[Alanbobb]

My father is 95 years old. He wants to use part of the $11 million estate tax exemption and transfer $3 million to his beneficiaries this year. What IRS forms need to be filled out. 

Thank you. 

[Bsch4477]

Gift tax form 709

https://www.irs.gov/pub/irs-pdf/f709.pdf

[Alanbobb]

Thank you!

So if my father uses $3 million of the $11 million exemption in 2020 and the estate tax exemption is reduced to $3.5 million next year, he still is entitled to $3.5 million if he passes in 2021. Is this correct? 

[Anonymous_ · Accepted solution]

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@Alanbobb wrote:

So if my father uses $3 million of the $11 million exemption in 2020 and the estate tax exemption is reduced to $3.5 million next year, he still is entitled to $3.5 million if he passes in 2021. Is this correct? 

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You need to consult with a trusts and estates attorney/tax professional.

Generally, the value of the gross estate includes certain gifts made within 3 years of the decedent's death.

IRC § 2035

[Critter]

We will need to wait and see what congress does in the future ... but until 2026 there is nothing to worry about...

The estate-tax exemption rose to $11.58 million in 2020, $180,000 higher than the year before to account for inflation. The current estate tax exemption is set to expire at sunset in 2025, at which time it could revert to the pre-2018 exemption level of $5 million for an individual taxpayer.